Can You Finance a Car with No Credit?

salesman passing over new car key

 

If your credit isn’t in the best shape but you still need a new car, or if you don’t have credit history at all, you’re probably asking a lot of questions. If you are looking to finance a car with bad credit or finance a car with no credit, you should be happy to know that you aren’t completely out of options. Bad credit car financing definitely has more hurdles compared to those who have good credit, but if you need an auto loan with bad credit, you’re in good hands. Anderson Auto Group is committed to help all Lake Havasu City drivers get a car that’s perfect for them.

How to Finance a Vehicle with Bad Credit

If you’re looking for a new or pre-owned car in the Lake Havasu City but your credit score needs improving, you might be worried that you won’t be able to get an auto loan with bad credit. It’s true that the first thing auto lenders take into consideration is a driver’s credit score, and they’re more likely to loan money to someone with good credit, but it isn’t impossible to finance a ride with a poor credit score. There are some additional hurdles to face if you need an auto loan with bad credit, but you can still do it. The process for new and used car financing is the same in essentials, so the following tips apply if you’re looking for how to get a used car loan with bad credit as well! The finance team at Anderson Auto Group has all the details on how to finance a vehicle with bad credit below.

Securing a Car Loan with a Poor Credit Score: 5 Tips

Whether you want to know how to get a new car loan or how to get a used car loan with bad credit, the following five tips should help you out. Keep these things in mind, and feel free to contact our office with any questions:

  • Make a budget. This is the first thing you should do regardless of your credit score. Come up with a realistic number for how much you can afford to borrow, factoring in expenses like gas, maintenance, registration, and insurance, as well as the MSRP of the vehicle you want to finance.
  • Make a bigger down payment. Securing a loan is all about convincing creditors to see you favorably as a lender, and one easy way to do this–if your financial situation allows it–is to put down a larger down payment. This also means that you’ll have a smaller loan balance to pay off down the road.
  • Clean up your credit report. Before applying for financing, carefully go through your credit report and look for any errors or outstanding debts. If you’re able to pay off at least some debts, it goes a long way towards improving your credit score. Be sure to dispute any issues you find with your credit card company, since they might be unnecessarily bringing down your score.
  • Be realistic. The biggest thing that you can do if you need an auto loan with bad credit is to temper your expectations. You may not be able to get your dream car just yet, and that’s okay! Focus on setting realistic goals and finding something that will hold up well on the Bullhead City roads for a long time.
  • Shop around. If you feel like you aren’t getting a good rate from a lender, shop around at a few different places to find the best deal possible.

Improving Your Credit Score

Did you know that financing a vehicle is actually a way you can improve your credit score? It’s true! Making consistent, full monthly payments will significantly boost your credit score and credit profile. As your credit score improves, you’ll get more lending power in the future and you’ll be able to secure lower-interest loans and credit cards.

Finance Your Next Ride at Anderson Auto Group Today!

Feel free to contact our office or stop by our dealership near Kingman if you have any questions about how to get a used car loan with bad credit. You can also check out our trade-in option if you’re interested in saving even further on your next ride!

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